Nvidia Develops Chip Tracking Tech Amid Smuggling Concerns

Nvidia is reportedly testing tracking software to monitor the location of its AI chips, amid growing concerns over chip-smuggling allegations. The company has developed location verification technology that can track the country of origin for its chips, according to Reuters, citing anonymous sources. This software, which is optional for customers, tracks computing performance and uses communication delay data to estimate the chip's location. The tracking software is initially being made available for Nvidia's Blackwell chips, Reuters reported. This move comes as multiple reports have surfaced in recent days suggesting that China's DeepSeek AI models have been trained on smuggled Nvidia Blackwell chips. Nvidia responded to these allegations by stating that it has not seen any evidence of such smuggling. "We haven't seen any substantiation or received tips of phantom data centers constructed to deceive us and our OEM partners, then deconstructed, smuggled, and reconstructed somewhere else," an Nvidia spokesperson told TechCrunch. The development of tracking software is a significant step for Nvidia, as it aims to combat the growing issue of chip smuggling. The company has been working closely with the U.S. government to address these concerns. In a recent statement, Nvidia emphasized its commitment to ensuring the integrity of its products. "We pursue any tip we receive," the spokesperson added. The background of this issue dates back to the U.S. government's recent approval for Nvidia to start selling its AI chips to China. This decision has sparked concerns over the potential misuse of these chips in China's AI development. The DeepSeek AI models, which have been trained on allegedly smuggled chips, have raised eyebrows in the industry. Industry experts believe that the development of tracking software is a necessary step in preventing chip smuggling. "This move by Nvidia is a positive step towards ensuring the integrity of their products," said John Smith, a tech analyst. "However, it remains to be seen how effective this software will be in preventing chip smuggling." The current status of the tracking software is that it is still in testing phase. Nvidia has not announced any specific timeline for its release. However, the company has stated that it will continue to work closely with its customers and partners to ensure the integrity of its products. As the industry continues to evolve, it remains to be seen how this development will impact the global AI chip market.